Nalco Shelves South Africa Projects

MUMBAI -- India's National Aluminium Co. has shelved its projects in South Africa and put on hold its plans for Iran due to political considerations, a senior company executive said Monday. Both investments had a combined value of 270 billion rupees ($5.85 billion). The country's second-largest aluminum producer by output had plans to set up a 500,000-metric ton aluminium smelter and a 1,250-megawatt plant in South Africa, and a 300,000-ton smelter and an 800 MW power station in Iran. Director (Finance) B.L. Bagra told Dow Jones Newswires the company found it difficult in South Africa to arrive at agreements with several small groups of local entrepreneurs who had been awarded mineral concessions in the country as part of the country's affirmative action policy. "Coal availability was not an issue (in South Africa). The trouble is the mineral concessions are with small groups who couldn't reach an agreement with us," Mr. Bagra said, adding the company has been negotiating with various groups for 18 months. In Iran, Mr. Bagra said, politics was an issue. "They (the Iranian government) should have jumped at this opportunity, but they haven't," he said, adding the company will continue to monitor developments for a decision on the 100 billion rupees plan for Iran.